Lou You need to see a certified elder law attorney with a copy of the trust, the taxes, the financials of your parents etc. This attorney must be proficient, experienced, etc in dealing with trusts and Medicaid for your parents state. There are so very many details to consider and each state has different laws.
To me the best thing to do would be to sell their home, and use that money for their care, whether it be for care in an assisted living facility, memory care or skilled nursing facility. And if and when that money runs out you can apply for Medicaid for them.
A bit more info would be helpful What type of care is needed? Is it a few hours a day or 24/7 care? There are programs that can help. You can check with your local Senior Service Center or local Area Agency on Aging. either might be aware of programs that your parents might be eligible for. Are either of your parents Veterans? If so the VA may be of big help. And depending on where and when the service was it might be a little help or a LOT! Contact your local Veterans Assistance Commission. The services they provide are free. If they qualify there is Aid and Attendance that will provide some income.
One of the things that might be worth spending some money on is a consultation with an Elder Law Attorney. make sure you have all the paperwork done that you need to have done in order to legally be able to help them and make decisions for them when the time comes.
While wanting to keep them in their house is a great idea it is not always the safest, easiest and least expensive option.
Hi thanks for the input they are currently on Medicaid house has been in a trust for over 10 years they currently have 8 hour 7 days a week care from Medicaid need night aid they are in there early 90s mentally both in good shape need help mainly for showering laundry meal prep and lite cleaning,nursing home is out of the question just looking to draw on the house to pay for nite aid looking for best option thank you
I would see an elder law attorney with full list of assets of parents if you are the POA and have the ability to act for them. If you are trying to help them with the decision then it is a good idea to see the attorney for options WITH them, to help in decision making. This isn't DIY stuff. It makes a huge difference if you get a reverse mortgage in helping pay for inhome help and etc DEPENDENT ON how much the reverse mortgage gives monthly. HOWEVER, most are payable within a few months of exit from home, whether for care in -facility or not, forcing sale of home. AND they add to the monthly income of a senior who may WITHOUT THIS CASH be qualifying for Medicaid. WITH the cash they may not qualify. For instance: Myrtle applies for and gets a reverse mortgage loan. Myrtle gets 700.00 SS a month. The reverse mortgage gives Myrtle another 2,000 a month. Now Myrtle falls and breaks her hip and isn't recovering. She must enter care. Her income now, however is 2,700 a month and she may not qualify for Medicaid help.
There are so many other things to weigh and these are legal matters that are changeable for state you live in and dependent on other assets. Do see an attorney.
Unless there is something about the house that makes sense to continue to own it, for most kids, if the parent is a widow or widower entering a facility then selling the parents empty home makes the most sense. & have them enter the AL or NH first with enough $ set aside to be able to private pay 4-6 months and then clear out the house and get it freshen up / staged to get it best possible FMV. And have your parent do their legal so that you as a POA can fully do whatever needed to do the Act of Sale paperwork as needed in your State. Be a motivated seller so it sells in 4-6 months so that there isn’t a $ problem in paying the facility. Hopefully it sells.
Also please get a Realtor who understands that the place will really truly be Seller is “as is” no warranties, no repairs, so buyers offers accordingly.
If it’s sale price suggested by the Realtor is wildly different & lower than its tax assessor value, I’d suggest that you get it inspected and appraised. Both done by registered and licensed professionals as selling for under FMV will be an issue for LTC Medicaid should elder run out of $ and end up applying for this Medicaid program to pay for their stay in a NH. Also this program looks at all their finances and if they gifted any $ - like gave some house sale $ to others - they will be penalized.
reverse mortgages are imho smoke and mirrors. $ wise it’s about 45% of value of the house and it is a loan that has 2 be repaid if family should want the property. If the property still has a mortgage on it, that has to be paid off first from the reverse mortgage $ before you can be paid. On the RM the owner still responsible for taxes, repairs and insurance. If they have owned the place forever, their insurance may be outdated. But now it has a new mortgage so all new coverage needed and maybe costly. If insurance, taxes, or repairs not done, the reverse mortgage can be called in, payable in full.
For a HELOC a homeowner will need a credit score and source of income. If old, have no payroll to show. Their SS payments alone may not be high enough to qualify for a HELOC. Heloc is a loan that has to be paid back. And it won’t be a 30 yr like a regular mortgage. But maybe 10 years cause borrower is old so bank wants it paid off before you’re likely to die. If borrowers need all the HELOC $ to pay for a NH, they won’t be able to pay the HELOC and that will be a problem. As the bank will foreclose.
See an elderly attorney for financing options. I do not recommend a reverse mortgage if funds are needed for future care. Do not look at a crystal ball since you never know what may happen in the future. When funds run out, Medicaid is an option for home or facility.
To have a reversed mortgage the person has to be living in the home. Once not living there, the mortgage is called in. I agree, need more info. Is Mom living in her home? If not where is living. Do you have POA? If Mom has Dementia, she is not able to take out a loan in her name because she no longer can make informed decisions. Not sure if a lender would deal with u even with POA. Not ur house.
Sell. Anything else will be time-consuming, as in maintenance; costly, as in whose money pays for upkeep; etc. etc. With a sale, you get a lump sum which then can be invested at 5+ percent at present. The money grows instead of disappears.
"Oh, but we all grew up there and Daddy wanted us to spend our whole adult lives having vacations there!" or "Mom may be able to go back there someday, so we have to keep it!" Nope. Nope. Nope.
It's your parents' asset, it should pay for their care, and you don't need the hassle of keeping it. Which it will be, since I doubt that your parents are presently up to it if you're thinking about care for them.
You need to see a certified elder law attorney with a copy of the trust, the taxes, the financials of your parents etc. This attorney must be proficient, experienced, etc in dealing with trusts and Medicaid for your parents state.
There are so very many details to consider and each state has different laws.
And if and when that money runs out you can apply for Medicaid for them.
What type of care is needed? Is it a few hours a day or 24/7 care?
There are programs that can help.
You can check with your local Senior Service Center or local Area Agency on Aging. either might be aware of programs that your parents might be eligible for.
Are either of your parents Veterans? If so the VA may be of big help. And depending on where and when the service was it might be a little help or a LOT! Contact your local Veterans Assistance Commission. The services they provide are free. If they qualify there is Aid and Attendance that will provide some income.
One of the things that might be worth spending some money on is a consultation with an Elder Law Attorney. make sure you have all the paperwork done that you need to have done in order to legally be able to help them and make decisions for them when the time comes.
While wanting to keep them in their house is a great idea it is not always the safest, easiest and least expensive option.
This isn't DIY stuff. It makes a huge difference if you get a reverse mortgage in helping pay for inhome help and etc DEPENDENT ON how much the reverse mortgage gives monthly. HOWEVER, most are payable within a few months of exit from home, whether for care in -facility or not, forcing sale of home. AND they add to the monthly income of a senior who may WITHOUT THIS CASH be qualifying for Medicaid. WITH the cash they may not qualify.
For instance:
Myrtle applies for and gets a reverse mortgage loan.
Myrtle gets 700.00 SS a month.
The reverse mortgage gives Myrtle another 2,000 a month.
Now Myrtle falls and breaks her hip and isn't recovering. She must enter care.
Her income now, however is 2,700 a month and she may not qualify for Medicaid help.
There are so many other things to weigh and these are legal matters that are changeable for state you live in and dependent on other assets.
Do see an attorney.
Also please get a Realtor who understands that the place will really truly be Seller is “as is” no warranties, no repairs, so buyers offers accordingly.
If it’s sale price suggested by the Realtor is wildly different & lower than its tax assessor value, I’d suggest that you get it inspected and appraised. Both done by registered and licensed professionals as selling for under FMV will be an issue for LTC Medicaid should elder run out of $ and end up applying for this Medicaid program to pay for their stay in a NH. Also this program looks at all their finances and if they gifted any $ - like gave some house sale $ to others - they will be penalized.
reverse mortgages are imho smoke and mirrors. $ wise it’s about 45% of value of the house and it is a loan that has 2 be repaid if family should want the property. If the property still has a mortgage on it, that has to be paid off first from the reverse mortgage $ before you can be paid. On the RM the owner still responsible for taxes, repairs and insurance. If they have owned the place forever, their insurance may be outdated. But now it has a new mortgage so all new coverage needed and maybe costly. If insurance, taxes, or repairs not done, the reverse mortgage can be called in, payable in full.
For a HELOC a homeowner will need a credit score and source of income. If old, have no payroll to show. Their SS payments alone may not be high enough to qualify for a HELOC. Heloc is a loan that has to be paid back. And it won’t be a 30 yr like a regular mortgage. But maybe 10 years cause borrower is old so bank wants it paid off before you’re likely to die. If borrowers need all the HELOC $ to pay for a NH, they won’t be able to pay the HELOC and that will be a problem. As the bank will foreclose.
Sell it..
unless for some odd reason you cannot.. or don’t want to.
"Oh, but we all grew up there and Daddy wanted us to spend our whole adult lives having vacations there!" or "Mom may be able to go back there someday, so we have to keep it!" Nope. Nope. Nope.
It's your parents' asset, it should pay for their care, and you don't need the hassle of keeping it. Which it will be, since I doubt that your parents are presently up to it if you're thinking about care for them.
See All Answers